Comment: You said that precious metals

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In reply to comment: OK so whats your point? (see in situ)

You said that precious metals

You said that precious metals can be converted to any currency. That's where their value lies -- in converting them to a fiat government money.

Metals are not widely accepted for gasoline or food, so you need to convert it to "fake" fiat FRNs first -- which means that the "fake monopoly money" is more valuable than the metal.

My point is that dollars are more of a money than metals are, because people widely accept dollars, even though they lose value (because the government inflates the money supply).

The reason people value the government's monopoly counterfeit money is because of legal tender laws and because the IRS will only accept FRNs.

It's the violence and threats of government that force people to value and use FRNs.

In a free market, gold and silver (certificates) would be widely accepted and FRNs would be worth nothing.